LSI Completes Acquisition of SandForce, Inc.
Acquisition adds industry-leading flash storage processors to industry’s broadest portfolio of storage technology solutions
MILPITAS, Calif., January 4, 2012 – LSI Corporation (NYSE: LSI) today announced that it has completed the purchase of SandForce, Inc., the leading provider of flash storage processors for enterprise and client flash solutions and solid state drives (SSDs). With the addition of innovative flash-based storage solutions that accelerate application performance, LSI assumes a leadership position in the rapidly growing market for flash storage processors for ultrabook, notebook and enterprise SSD and flash solutions.
“Customer response to the announcement has been very positive and we are pleased to now be able to fully demonstrate the benefits of the combined technology capabilities of LSI and SandForce,” said Jeff Richardson, executive vice president and chief operating officer. “Together, we offer the broadest storage technology portfolio in the industry, and are well positioned to help customers manage their growth and the explosive growth in data across enterprises and the cloud.”
Flash storage processors provide the intelligence required to deliver the performance and low-latency benefits of flash storage in enterprise and client applications. SandForce’s award-winning products improve the reliability, endurance and power efficiency of flash-based storage solutions, resulting in storage solutions that improve performance and deliver the durability required to more broadly adopt flash in mission-critical applications.
The SandForce team joins LSI as the newly formed Flash Components Division, headed by Michael Raam, formerly president and CEO of SandForce. Approximately 190 SandForce employees have joined the LSI team with the close of the transaction.
The company will provide more information on the acquisition on its fourth quarter earnings conference call.
Forward-Looking Statements: This news release contains forward-looking statements that are based on the current opinions and estimates of management. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause LSI’s actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: our ability to successfully integrate and manage the SandForce business and retain its key employees; our ability to achieve anticipated synergies and to develop integrated new products following our acquisition of SandForce; our ability to eliminate costs related to the external storage systems business that we sold to NetApp; our ability to repurchase our common stock at prices we believe to be advantageous; the impact of the recent flooding in Thailand; our reliance on major customers and suppliers; our ability to keep up with rapid technological change; our ability to compete successfully in competitive markets; fluctuations in the timing and volumes of customer demand; the unavailability of appropriate levels of manufacturing capacity; and general industry and macro-economic conditions. For additional information, see the documents filed by LSI with the Securities and Exchange Commission, and specifically the risk factors set forth in the company’s most recent reports on Form 10-K and 10-Q. LSI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
LSI Corporation (NYSE: LSI) designs semiconductors and software that accelerate storage and networking in datacenters and mobile networks. Our technology is the intelligence critical to enhanced application performance, and is applied in solutions created in collaboration with our partners. More information is available at www.lsi.com
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